Compensation or Penalty Clauses in Employment Contracts and Home Worker Definition

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asked on Jul 4, 2019 at 20:58
edited on Jul 20, 2019 at 09:06
1. What is the legality of compensation clauses requiring employees to pay sums that exceed the total salary they would earn in the contract period upon termination? ('termination' wasn't explained either)

Not a law student or a lawyer - asking because there is such a clause in my probationary contract as a part time copywriter. As it is written, if I, for whatever reason, fail my probation, not only do I get the boot,  I have to pay my employers more than what I've made in that period? Sounds highly unethical. Is it even enforceable? I understand that if this is a normal work contract, I could have claims for unfair dismissal. However, on a probationary contract, I don't have that option available to me.

2. The contract also states that I am not liable for paid holidays because it deems me a 'homeworker'. They quoted the Employment Act 2010. However, they are requesting that I work in the office in the beginning (3 days a week, 8 hours a day), where working from home would be an option down the line. I would still have to be in the office for meetings etc. 

In my opinion, this does not classify me as a homeworker, as I am liable to being called into work when they deem fit. My work days for the week are also decided in advance.

What is the definition of home worker? Thank you!
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answered on Jul 5, 2019 at 00:39
edited Jul 20, 2019 at 09:17

Do post a copy of the working contract here for better explanations.

From what is being written and described above, you neither fall under the following Employment Laws of Malaysia:
A.  Employment Act 1955 [Act 265] refer to The Principal Act (Schedule 1)
B.  Industrial Relations Act 1967 [Act 177]

Hence if there is any dispute on wages, paid holidays, overtime (O.T.) claims, one can only make claims in a civil court under Laws of Contracts. You are neither a 
1.  Full time employee
2.  Part-Time employee
3.  Contract worker

Home-working is ill defined in Malaysia.
Employment Act 2010 is for the protection of part-time employee.
It appears that the terms and conditions (for the above) is not given adequately as in any form of protection for part-time workers.

My personal opinion is that a "worker" should not sign an ill defined employment contract whereby if there is no protection from Employment Act 1955 and/or Industrial Relations Act 1967.

(Caveat : The above comments is written by a Q&A registered User. It represents a personal point of view only and not be regarded as legal advice.)
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